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Capricor jumps on cell therapy deal with Janssen

January 7, 2014 1:28 AM UTC

Capricor Therapeutics Inc. (OTCQB:CAPR) partnered with the Janssen Biotech Inc. subsidiary of Johnson & Johnson (NYSE:JNJ) to develop Capricor's cell therapy programs for cardiologic applications, including Capricor's lead program, CAP-1002. The news sent Capricor shares up $1.66 (49%) to $5.06 on Monday. Capricor will receive $12.5 million up front -- a payment that is almost double the company's market cap on Friday, before the deal was announced. Capricor retains rights to its programs for vascular indications. CEO Linda Marban said specific responsibilities have not yet been determined, though she told BioCentury the partners are initially going to focus on developing a manufacturing process for CAP-1002. Capricor will contribute undisclosed, capped funding for manufacturing costs. ...